GlaxoSmithKline Consumer Nigeria (GSK) Plc has posted a 16.85 per cent decline in profit after tax for the full year ended December 31, 2021. According to its financial report obtained from the Nigerian Exchange Limited (NGX), the company’s profit after tax for the period stood at N517.506 million as against N622.230 million reported in 2020, accounting for a drop of 16.83 per cent. Profit before tax dropped by 23 per cent from N1.000 billion in 2020 to N762.222 million in 2021. However, revenue grew by 5.42 per cent to N22.449 billion from N21.295 billion in 2020 while cost of sales grew by 6.77 per cent to N16.421 billion from N15.380 billion.
GSK closed the half year ended June 30, 2021, with a decline of 80.33 per cent to close at N59.905 million from N304.538 million in 2020. Profit before tax equally dropped by 80.19 per cent from N447.849 billion 2020 to N88.689 million in 2021 while revenue decline by 5.45 per cent from N10.431 billion in 2020 to N9.862 billion in half year 2021.
Cost of sales at N7.087 billion in 2021 as against N7.662 billion recorded in 2020. Britain’s GSK had recently cautioned that fullyear earnings would likely come in at the lower end of its forecast range after COVID- 19 took a toll on its vaccines unit, with people in the United States shunning visits to their physician for their shots. According to Reuters, GSK shares were down one per cent at 1,347.2 pence after the drugmaker’s shingles vaccine Shingrix, the biggest driver of sales growth last year, saw quarterly revenue fall 30 per cent from a year earlier to 374 million pounds ($487 million), some 18.5 per cent below market expectations.
While the pandemic has hit its businesses during the first nine months of 2020, GSK said it had lately seen a recovery in vaccination rates, with adult immunisations in the United States returning to prior-year levels towards the end of the quarter. “What we saw through the quarter were definitely lower vaccination rates in July and August,” GSK CEO, Emma Walmsley, said on a media call. “In September and indeed through the early weeks of October, however, we are back at pre-pandemic levels,” he added. For the drug industry as a whole the effects of COVID- 19 on vaccination behaviour has been at times erratic and difficult to forecast. Pfizer PFE.N for instance said recently that while many people missed shots of its best-selling Prevnar 13 vaccine (against pneumoniacausing bacteria) during the second quarter, there had been a catch-up trend during the third quarter.